A sustained move under $53.61 will signal the presence of sellers revealing a bull trap. This will trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the supplying extend into the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the use of buyers. This can also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum will not likely continue and testing $54.98 is really a pipe dream for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant impact on the globe oil market. Iran’s oil reserves would be the fourth largest on earth and they’ve a production capacity of approximately 4 million barrels per day, driving them to the second biggest producer in OPEC. Iran’s oil reserves account for approximately 10% from the world’s total proven petroleum reserves, with the rate from the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about 2million barrels of oil per day towards the market and based on the world bank this may result in the lowering of the oil price by $10 per barrel the coming year.
According to Data from OPEC, at the beginning of 2013 the most important oil deposits have been in Venezuela being 20% of global oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Due to characteristics of the reserves it is not always possible to bring this oil towards the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased interest in natural gas instead of fossil fuel further reduces overall interest in oil, the increase in supply from Iran along with the continuation Saudi Arabia putting more oil to the market should start to see the price drop on the next Yr and several analysts are predicting prices will get into the $30’s.
More info about crude oil technical analysis today please visit internet page: read here.